For the first time since 2012 credit ratings provider Moody’s upgraded the Egyptian government’s bond rating to B3, with a stable outlook, rising from Caa1, it announced on Tuesday.

In a press release, Moody’s said the level of Egypt’s credit rating rose by one notch after a long-term loan from both foreign and local currencies, bringing each to B3 with keeping Egyptian economy at a “stable” degree.

This rise depends on the stability of the cash reserves at the Central Bank of Egypt (CBE) at $15.5bn at the end of February 2015, which provides cover for a large external debt service during the current year.

Moody’s explained that the forecast for local and foreign investments increased especially after the recent Economic Summit, where Gulf states declared support. This came in addition to the announcement of the signing of foreign direct investment (FDI) worth approximately $38bn, which reduces the risks of the balance of payments.

Source: Daily News Egypt.